9th Circuit: Court Applied Correct Legal Standard In Flood Coverage Dispute
SEATTLE – A lower federal court’s finding that a federal flood insurer acted culpably by failing to provide a credible explanation for its failure to respond to insureds’ breach of contract and bad faith lawsuit did not preclude it from setting aside a $ 655,489.42 default judgment against the insurer based upon excusable neglect, the Ninth Circuit U.S. Court of Appeals affirmed Aug. 10 (Todd Brandt And Karen Brandt v. American Bankers Insurance Company of Florida, No. 10-35764, 9th Cir.; 2011 U.S. App. LEXIS 16426).
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